Gse Systems (GVP) 10-Q 14 Nov 22 2022 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2022	Oct. 31, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Document Transition Report	false
Entity File Number	001-14785
Entity Registrant Name	GSE Systems, Inc.
Entity Central Index Key	0000944480
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	52-1868008
Entity Address, Address Line One	6940 Columbia Gateway Dr.
Entity Address, Address Line Two	Suite 470
Entity Address, City or Town	Columbia
Entity Address, State or Province	MD
Entity Address, Postal Zip Code	21046
City Area Code	410
Local Phone Number	970-7800
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Title of 12(b) Security	Common Stock, $0.01 Par Value
Trading Symbol	GVP
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		21,720,661

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 3,660	$ 3,550
Restricted cash, current	651	0
Contract receivables, net	10,152	11,257
Prepaid expenses and other current assets	1,969	5,262
Total current assets	16,432	20,069
Equipment, software and leasehold improvements, net	796	839
Software development costs, net	554	532
Goodwill	6,299	13,339
Intangible assets, net	1,854	3,020
Restricted cash - long term	932	0
Operating lease right-of-use assets, net	777	1,200
Other assets	52	52
Total assets	27,696	39,051
Current liabilities:
Line of credit	0	1,817
Current portion of long-term note	2,762	0
Accounts payable	713	1,179
Accrued expenses	2,119	1,358
Accrued compensation	1,655	1,452
Billings in excess of revenue earned	4,152	5,029
Accrued warranty	478	667
Income taxes payable	1,635	1,654
Derivative liabilities	653	0
Other current liabilities	988	1,883
Total current liabilities	15,155	15,039
Long-term note, less current portion	1,181	0
Operating lease liabilities noncurrent	209	790
Other noncurrent liabilities	171	179
Total liabilities	16,716	16,008
Commitments and contingencies (Note 16)
Stockholders' equity:
Preferred stock $0.01 par value; 2,000,000 shares authorized; no shares issued and outstanding	0	0
Common stock $0.01 par value; 60,000,000 shares authorized, 23,319,572 and 22,533,005 shares issued, 21,720,661 and 20,934,094 shares outstanding, respectively	233	225
Additional paid-in capital	82,095	80,505
Accumulated deficit	(68,411)	(54,584)
Accumulated other comprehensive income (loss)	62	(104)
Treasury stock at cost, 1,598,911 shares	(2,999)	(2,999)
Total stockholders' equity	10,980	23,043
Total liabilities and stockholders' equity	$ 27,696	$ 39,051

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2022	Dec. 31, 2021
Stockholders' equity:
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	2,000,000	2,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	60,000,000	60,000,000
Common stock, shares issued (in shares)	23,319,572	22,533,005
Common stock, shares outstanding (in shares)	21,720,661	20,934,094
Treasury stock at cost (in shares)	1,598,911	1,598,911

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract]
Revenue	$ 11,898	$ 14,686	$ 36,918	$ 41,312
Cost of revenue	8,642	11,503	28,063	32,512
Gross profit	3,256	3,183	8,855	8,800
Operating expenses:
Selling, general and administrative	4,336	3,265	13,253	10,521
Research and development	186	149	510	460
Restructuring (benefit) charges	0	(10)	0	798
Goodwill and intangible asset impairment charge	7,505	3	7,505	3
Depreciation	69	69	213	216
Amortization of intangible assets	209	286	700	929
Total operating expenses	12,305	3,762	22,181	12,927
Operating loss	(9,049)	(579)	(13,326)	(4,127)
Interest expense, net	(422)	(32)	(928)	(135)
Change in fair value of derivative instruments, net	263	0	377	0
Other (loss) income, net	(2)	12,215	(58)	16,853
(Loss) income before income taxes	(9,210)	11,604	(13,935)	12,591
(Benefit from) provision for income taxes	(218)	166	(108)	127
Net (loss) income	$ (8,992)	$ 11,438	$ (13,827)	$ 12,464
Net (loss) income per common share - basic (in dollars per share)	$ (0.42)	$ 0.55	$ (0.66)	$ 0.6
Net (loss) income per common share - diluted (in dollars per share)	$ (0.42)	$ 0.55	$ (0.66)	$ 0.6
Weighted average shares outstanding used to compute net (loss) income per share - basic (in shares)	21,288,883	20,863,479	21,101,942	20,714,068
Weighted average shares outstanding used to compute net (loss) income per share - diluted (in shares)	21,288,883	20,863,479	21,101,942	20,714,068

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME [Abstract]
Net (loss) income	$ (8,992)	$ 11,438	$ (13,827)	$ 12,464
Cumulative translation adjustment	91	(23)	166	1,109
Comprehensive (loss) income	$ (8,901)	$ 11,415	$ (13,661)	$ 13,573

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]	Treasury Stock [Member]	Total
Balance at Dec. 31, 2020	$ 222	$ 79,687	$ (65,191)	$ (1,214)	$ (2,999)	$ 10,505
Balance (in shares) at Dec. 31, 2020	22,193				(1,599)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	$ 0	784	0	0	$ 0	784
Common stock issued for RSUs vested	$ 3	(3)	0	0	0	0
Common stock issued for RSUs vested (in shares)	306
Shares withheld to pay taxes	$ 0	(188)	0	0	0	(188)
Foreign currency translation adjustment	0	0	0	1,109	0	1,109
Net (loss) income	0	0	12,464	0	0	12,464
Balance at Sep. 30, 2021	$ 225	80,280	(52,727)	(105)	$ (2,999)	24,674
Balance (in shares) at Sep. 30, 2021	22,499				(1,599)
Balance at Jun. 30, 2021	$ 225	80,024	(64,165)	(82)	$ (2,999)	13,003
Balance (in shares) at Jun. 30, 2021	22,461				(1,599)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	$ 0	283	0	0	$ 0	283
Common stock issued for RSUs vested	$ 0	0	0	0	0	0
Common stock issued for RSUs vested (in shares)	38
Shares withheld to pay taxes	$ 0	(27)	0	0	0	(27)
Foreign currency translation adjustment	0	0	0	(23)	0	(23)
Net (loss) income	0	0	11,438	0	0	11,438
Balance at Sep. 30, 2021	$ 225	80,280	(52,727)	(105)	$ (2,999)	24,674
Balance (in shares) at Sep. 30, 2021	22,499				(1,599)
Balance at Dec. 31, 2021	$ 225	80,505	(54,584)	(104)	$ (2,999)	23,043
Balance (in shares) at Dec. 31, 2021	22,533				(1,599)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	$ 0	1,504	0	0	$ 0	1,504
Common stock issued for RSUs vested	$ 5	(5)	0	0	0	0
Common stock issued for RSUs vested (in shares)	443
Shares withheld to pay taxes	$ 0	(226)	0	0	0	(226)
Foreign currency translation adjustment	0	0	0	166	0	166
Repayment of convertible note in shares	$ 3	317	0	0	0	320
Repayment of convertible note in shares (in shares)	344
Net (loss) income	$ 0	0	(13,827)	0	0	(13,827)
Balance at Sep. 30, 2022	$ 233	82,095	(68,411)	62	$ (2,999)	10,980
Balance (in shares) at Sep. 30, 2022	23,320				(1,599)
Balance at Jun. 30, 2022	$ 228	81,324	(59,419)	(29)	$ (2,999)	19,105
Balance (in shares) at Jun. 30, 2022	22,850				(1,599)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	$ 0	479	0	0	$ 0	479
Common stock issued for RSUs vested	$ 2	(2)	0	0	0	0
Common stock issued for RSUs vested (in shares)	126
Shares withheld to pay taxes	$ 0	(23)	0	0	0	(23)
Foreign currency translation adjustment	0	0	0	91	0	91
Repayment of convertible note in shares	$ 3	317	0	0	0	320
Repayment of convertible note in shares (in shares)	344
Net (loss) income	$ 0	0	(8,992)	0	0	(8,992)
Balance at Sep. 30, 2022	$ 233	$ 82,095	$ (68,411)	$ 62	$ (2,999)	$ 10,980
Balance (in shares) at Sep. 30, 2022	23,320				(1,599)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities:
Net (loss) income	$ (8,992)	$ 11,438	$ (13,827)	$ 12,464
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Goodwill and intangible asset impairment charge	7,505	3	7,505	3
Depreciation	69	69	213	216
Amortization of intangible assets	209	286	700	929
Amortization of capitalized software development costs			255	281
Amortization of deferred financing costs			11	8
Amortization of debt discount			925	0
Gain on PPP loan forgiveness			0	(10,127)
Stock-based compensation expense			1,592	784
Bad debt expense (recovery)	0	0	97	(133)
Change in fair value of derivative instruments, net			(377)	0
Deferred income taxes			(80)	0
Changes in assets and liabilities:
Contract receivables, net			922	(1,888)
Prepaid expenses and other assets			3,638	(5,356)
Accounts payable, accrued compensation and accrued expenses			539	1,409
Billings in excess of revenue earned			(818)	(831)
Accrued warranty			(163)	(192)
Other liabilities			(382)	2,147
Net cash provided by (used in) operating activities			750	(286)
Cash flows from investing activities:
Capital expenditures			(171)	(392)
Capitalized software development costs			(276)	(226)
Net cash used in investing activities			(447)	(618)
Cash flows from financing activities:
Proceeds from line of credit			0	800
Repayment of line of credit			(1,817)	(1,739)
Repayment of insurance premium			(906)	(609)
Proceeds from issuance of long-term note and warrants, net of debt issuance cost and original issue discount			4,782	0
Repayment of convertible note			(319)	0
Tax paid for shares withheld			(226)	(188)
Net cash provided by (used in) financing activities			1,514	(1,736)
Effect of exchange rate changes on cash			(124)	(19)
Net increase (decrease) in cash, cash equivalents and restricted cash			1,693	(2,659)
Cash, cash equivalents and restricted cash at beginning of the period			3,550	6,702
Cash, cash equivalents and restricted cash at the end of the period	5,243	4,043	5,243	4,043
Cash and cash equivalents	3,660	4,043	3,660	4,043
Restricted cash, current	651	0	651	0
Restricted cash included in other long-term assets	932	0	932	0
Total cash, cash equivalents and restricted cash	5,243	4,043	5,243	4,043
Non-cash financing activities
Repayment of convertible note			320	0
Discount on issuance of convertible note	$ 750	$ 0	$ 750	$ 0

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2022
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 1 - Summary of Significant Accounting Policies Basis of Presentation GSE Systems, Inc. is a leading provider of professional and technical engineering, staffing services and simulation software to clients in the power and process industries. References in this report to “GSE” or “we” or “our” or “the Company” are to GSE Systems, Inc. and our subsidiaries, collectively. The consolidated interim financial statements included herein have been prepared by GSE and are unaudited. In the opinion of our management, all adjustments and reclassifications of a normal and recurring nature necessary to present fairly the financial position, results of operations and cash flows for the periods presented, have been made. Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted. All intercompany accounts and transactions have been eliminated in consolidation. The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. The accompanying balance sheet data for the year ended December 31, 2021 was derived from our audited financial statements, but it does not include all disclosures required by U.S. GAAP. The results of operations for interim periods are not necessarily an indication of the results for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the U.S. Securities and Exchange Commission on March 31, 2022. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as reported amounts of revenues and expenses during the reporting period. Our most significant estimates relate to revenue recognition on contracts with customers, product warranties, valuation of goodwill and intangible assets acquired including the determination of fair value in impairment tests, valuation of long-lived assets to be disposed of, valuation of stock-based compensation awards, the recoverability of deferred tax assets, and valuation of warrants and derivative liability related to our convertible note. Actual results of these and other items not listed could differ from these estimates and those differences could be material. COVID-19 As of September 30, 2022, most of our employees continue to work remotely except when required to be at the client site for essential project work. As an essential services provider, we maintain a modest office footprint in certain locations to allow for employees to work from those offices as project needs may arise. Throughout the pandemic GSE has complied with local, state and federal directives and regulations. Our Performance Improvement Solutions segment's (see Item 2) contracts, which generally are considered essential services, are permitted to and mostly continue without pause. However, we have experienced certain delays in certain new business opportunities. At the onset of the pandemic, many of our Workforce Solutions segment (see Item 2) customers paused or delayed contracts as they shrank their own on-premise workforces to the minimum operating levels in order to mitigate the effects of the pandemic. As a result, our Workforce Solutions segment has experienced a decline in its billable employee base during this time. Since the beginning of 2022, the Workforce Solutions segment began to receive an increase in opportunities as clients became more comfortable with employees returning to on-site work. Notably, the increase in opportunities shifted greatly to direct hire openings, rather than the normal hourly billable base. We cannot fully estimate the length or gravity of the impact of the COVID-19 pandemic to our business at this time and we have experienced delays in commencing new projects and resuming work on existing contracts. Therefore, our ability to deliver our services and recognize revenue has been delayed for some contracts. We experienced order reductions, cancellations, and other negative changes to orders due to the pandemic. We routinely monitor our operating expenses as a result of contract delays and order reductions; and we have made adjustments to maintain our gross profit at a sustainable level.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2022
Recent Accounting Pronouncements [Abstract]
Recent Accounting Pronouncements	Note 2 - Recent Accounting Pronouncements Accounting pronouncements recently adopted In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) Accounting pronouncements not yet adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses Management has evaluated other recently issued accounting pronouncements and does not believe that any of these pronouncements will have a significant impact on our consolidated financial statements and related disclosures.

Basic and Diluted (Loss) Income

Basic and Diluted (Loss) Income per Share	9 Months Ended
	Sep. 30, 2022
Basic and Diluted (Loss) Income per Share [Abstract]
Basic and Diluted (Loss) Income per Share	Note 3 - Basic and Diluted (Loss) Income per Share Basic earnings per share is based on the weighted average number of outstanding common shares for the period. Diluted earnings per share adjusts the weighted average shares outstanding for the potential dilution that could occur if outstanding RSU's, stock options and warrants were exercised. Basic and diluted earnings per share are based on the weighted average number of outstanding shares for the period. The number of common shares and common share equivalents used in the determination of basic and diluted (loss) income per common share were as follows: (in thousands, except for share data) Three months ended Nine months ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Numerator: Net (loss) income attributed to common stockholders $ (8,992 ) $ 11,438 $ (13,827 ) $ 12,464 Denominator: Weighted-average shares outstanding for basic earnings per share 21,288,883 20,863,479 21,101,942 20,714,068 Adjusted weighted-average shares outstanding and assumed conversions for diluted earnings per share 21,288,883 20,863,479 21,101,942 20,714,068 Shares related to potentially dilutive securities excluded because inclusion would be anti-dilutive 3,283,400 14,229 2,383,171 77,871

Coronavirus Aid, Relief and Eco

Coronavirus Aid, Relief and Economic Security Act	9 Months Ended
	Sep. 30, 2022
Coronavirus Aid, Relief and Economic Security Act [Abstract]
Coronavirus Aid, Relief and Economic Security Act	Note 4 - Coronavirus Aid, Relief and Economic Security Act Paycheck Protection Program Loan (PPP Loan) On March 27, 2020, the United States enacted the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) to extend liquidity to small businesses and assist in retaining employees during the COVID-19 pandemic. We applied for and, on April 23, 2020, received a payroll protection program loan in the amount of $10.0 million (the “PPP Loan”) under the CARES Act, as administered by the U.S. Small Business Administration (the “SBA”). The application for receipt of the PPP Loan required us to certify, in good faith, that the economic uncertainty made the loan necessary to support our ongoing operations. The PPP Loan was serviced by Citizens Bank, N.A. (the “Citizens”). The PPP Loan bore interest at a rate of 1% per annum and would mature on April 23, 2022, with the first payment deferred until September 2021. We used the proceeds of the PPP Loan for payroll and related costs, rent and utilities. Pursuant to the regulations promulgated by the SBA, in order to request forgiveness of the PPP Loan, we were required to submit an application to Citizens substantiating that we were entitled to the PPP Loan and used the proceeds of the PPP Loan as permitted under the CARES Act. Citizens reviewed our application for forgiveness and associated documentation, and on February 26, 2021 forwarded our application to the SBA with Citizens’ determination that the loan is fully forgivable. On August 5, 2021, we received notice that full principal amount and all accrued interest thereon of the PPP Loan was formally forgiven by the SBA. We recognized other income of $10.1 million related to this forgiveness during the third quarter of fiscal 2021. Employee Retention Credits (ERC) Employee retention tax credits, made available under the CARES Act, allow eligible employers to claim a refundable tax credit against the employer share of Social Security tax equal to 70% of the qualified wages they pay to employees, initially from March 27, 2020 until June 30, 2021, and extended through September 30, 2021. In 2021, we applied for $5.0 million in refunds from the Internal Revenue Service with filing of our 941s and achieved $2.2 million in credits from unremitted payroll taxes as allowed. We recorded other income of $7.2 million related to the employee retention tax credits earned for the year ended December 31, 2021. During the three months ended September 30, 2022, we didn't

Contract Receivables

Contract Receivables	9 Months Ended
	Sep. 30, 2022
Contract Receivables [Abstract]
Contract Receivables	Note 5 - Contract Receivables Contract receivables represent our unconditional rights to consideration due from our domestic and international customers. We expect to collect all contract receivables within the next twelve months. The components of contract receivables were as follows: (in thousands) September 30, 2022 December 31, 2021 Billed receivables $ 5,512 $ 6,124 Unbilled receivables 5,648 6,143 Allowance for doubtful accounts (1,008 ) (1,010 ) Total contract receivables, net $ 10,152 $ 11,257 Management reviews collectability of receivables periodically and records an allowance for doubtful accounts to reduce the Company’s receivables to their net realizable value when management determines it is probable that we will not be able to collect all amounts due from customers. The allowance for doubtful accounts is based on historical trends of past due accounts, write-offs, specific identification and review of customer accounts. There was no bad debt expense recorded during the three months ended September 30, 2022 and 2021. During the nine months ended September 30, 2022 and 2021, we recorded net bad debt expense (recovery) of $97 thousand and $(133) thousand, respectivel During the month of October 2022, we invoiced $2.5 million of the unbilled receivables as of September Our foreign currency denominated contract receivables, billings in excess of revenue earned and subcontractor accruals that are related to the outstanding foreign exchange contracts are remeasured at the end of each reporting period into our functional currency, using the current exchange rate at the end of the period. The gain or loss resulting from such remeasurement is included in other income, net in the consolidated statements of operations. During the three months ended September 30, 2022 and 2021, we recognized a gain on remeasurement of these foreign exchange contracts of $4 thousand and $6 thousand, respectively. During the nine months ended September 30, 2022 and 2021, we recognized a (loss) gain on remeasurement of these foreign exchange contracts of $(51) thousand and $27 thousand, respectively. As of September 30, 2022 and December 31, 2021, we had no customer concentrations in contract receivables that required disclosure.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Sep. 30, 2022
Goodwill and Intangible Assets [Abstract]
Goodwill and Intangible Assets	Note 6 - Goodwill and Intangible Assets The Company monitors operating results and events and circumstances that may indicate potential impairment of intangible assets . During the three months ended September 30, 2022, we determined that the deterioration in sales, decline in revenues, delayed pipeline opportunities, and overall downward performance results and the forecast related to the Workforce Solutions business segment was material enough to be considered a triggering event that could result in impairment of our long-lived assets. As such, we performed an interim analysis to determine if an impairment existed at September 30, 2022 in accordance with ASC 350 & ASC 360 . ASC 350 Indefinite-Lived Asset Testing – Based on the triggering event indicated above we performed an interim analysis to determine if an impairment of the Workforce Solutions business unit existed at September 30, 2022. Our Goodwill impairment analysis, which includes the use of discounted cash flow models that requires management to make assumptions regarding estimates of revenue growth rates and operating margins used to calculate projected future cash flows, and risk-adjusted discount rates determined the carrying value of Workforce Solutions exceeded the Fair Value by $7.0 million. As such, impairment of the related goodwill was recorded in the three months ended September 30, 2022 . ASC 360 Long-Lived Asset Testing – Based on the triggering event indicated above we also performed an interim analysis to determine if an impairment existed at September 30, 2022 by its individual asset groupings, which we determined to be at the subsidiary level. We used a discounted cash flow analysis to test for impairment and concluded that the carrying value of the definite-lived intangible assets of Absolute, a business unit of the Workforce Solutions segment, exceeded its carrying value by $0.5 million, and we recorded a loss on impairment for this amount as of September 30, 2022. No impairment was identified related to any other asset groupings . Goodwill (in thousands) Goodwill Impairment Net Performance Improvement Solutions $ 8,278 $ (3,370 ) $ 4,908 Workforce Solutions 8,431 (7,040 ) 1,391 Net book value at September 30, 2022 $ 16,709 $ (10,410 ) $ 6,299 (in thousands) Goodwill Impairment Net Performance Improvement Solutions $ 8,278 $ (3,370 ) $ 4,908 Workforce Solutions 8,431 - 8,431 Net book value at December 31, 2021 $ 16,709 $ (3,370 ) $ 13,339 The following table shows the gross carrying amount and accumulated amortization of definite-lived intangible assets: (in thousands) As of September 30, 2022 Gross Carrying Amount Accumulated Amortization Impairment Net Amortized intangible assets: Customer relationships $ 8,628 $ (6,940 ) $ (464 ) $ 1,224 Trade names 1,689 (1,174 ) - 515 Developed technology 471 (471 ) - - Non-contractual customer relationships 433 (433 ) - - Noncompete agreement 527 (477 ) - 50 Alliance agreement 527 (462 ) - 65 Others 167 (167 ) - - Total $ 12,442 $ (10,124 ) $ (464 ) $ 1,854 (in thousands) As of December 31, 2021 Gross Carrying Amount Accumulated Amortization Net Amortized intangible assets: Customer relationships $ 8,628 $ (6,432 ) $ 2,196 Trade names 1,689 (1,108 ) 581 Developed technology 471 (471 ) - Non-contractual customer relationships 433 (433 ) - Noncompete agreement 527 (429 ) 98 Alliance agreement 527 (382 ) 145 Others 167 (167 ) - Total $ 12,442 $ (9,422 ) $ 3,020 Amortization expense related to definite-lived intangible assets totaled $0.2 million and $0.3 million for the three months ended September 30, 2022 and 2021 and $0.7 million and $0.9 million for the nine months ended September 30, 2022 and 2021, respectively. The following table shows the estimated amortization expense of the definite-lived intangible assets for the next five years and thereafter: (in thousands) Years ended December 31: 2022 remainder $ 167 2023 508 2024 332 2025 255 2026 204 Thereafter 388 Total $ 1,854

Equipment, Software and Leaseho

Equipment, Software and Leasehold Improvements	9 Months Ended
	Sep. 30, 2022
Equipment, Software and Leasehold Improvements [Abstract]
Equipment, Software and Leasehold Improvements	Note 7 - Equipment, Software and Leasehold Improvements Equipment, software and leasehold improvements, net consist of the following: (in thousands) September 30, 2022 December 31, 2021 Computer and equipment $ 2,323 $ 2,270 Software 2,263 2,150 Leasehold improvements 659 659 Furniture and fixtures 838 839 6,083 5,918 Accumulated depreciation (5,287 ) (5,079 ) Equipment, software and leasehold improvements, net $ 796 $ 839 Depreciation expense was $69 thousand for both the three months ended September 30, 2022 and 2021. September September

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2022
Fair Value of Financial Instruments [Abstract]
Fair Value of Financial Instruments	Note 8 - Fair Value of Financial Instruments ASC 820, Fair Value Measurement The levels of the fair value hierarchy established by ASC 820 are: Level 1: inputs are quoted prices, unadjusted, in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2: inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. A Level 2 input must be observable for substantially the full term of the asset or liability. Level 3: inputs are unobservable and reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability. As of September Our convertible debt issued in February 2022 (See Note 10) includes certain embedded redemption features that are required to be bifurcated as embedded derivatives and measured at fair value on a recurring basis. We estimate the fair value using a Monte Carlo simulation based on estimates of our future stock price and assumptions about the possible redemption scenarios. The Company used the Monte Carlo simulation model to determine the fair value of the Warrants and Cash-Settled PRSUs, which required the input of subjective assumptions. The fair value of the Warrants as of September 30, 2022 was estimated with the following assumptions. Exercise Price $ 1.94 Common Stock Price $ 0.90 Risk Free Rate 4.0 % Volatility 65.0 % Term (in years) 4.4 yrs. The following table presents assets and liabilities measured at fair value at September (in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Derivative liability $ - $ - $ 237 $ 237 Warrant liability - - 416 416 Cash settled performance-vesting restricted stock units - - 56 56 Total liabilities $ - $ - $ 709 $ 709 The following table summarizes changes in the fair value of our Level 3 liabilities during the nine months ended September (in thousands) Embedded Redemption Features Warrant Cash Settled PRSUs Level 3 Total Balance at December 31, 2021 $ - $ - $ - $ - Derivative liabilities at issuance date 306 - - 306 Warrant liabilities at issuance date - 724 - 724 Change in fair value included in gain on derivative instruments, net (69 ) (308 ) - (377 ) Fair value of cash settled PRSUs vested - - 87 87 Cash paid on vested shares - - (31 ) (31 ) Balance at September $ 237 $ 416 $ 56 $ 709

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2022
Stock-Based Compensation [Abstract]
Stock-Based Compensation	Note 9 - Stock-Based Compensation We recognize compensation expense on a pro rata straight-line basis over the requisite service period for stock-based compensation awards with both graded and cliff vesting terms. We recognize the cumulative effect of a change in the number of awards expected to vest in compensation expense in the period of change. We have not capitalized any portion of our stock-based compensation. Our forfeiture rate is based on actuals. During the three months ended September September We granted no time-based restricted stock units (“RSUs”) during the three months ended September 30, 2022 . we granted approximately RSUs with an aggregate fair value of approximately $1.5 million. During the three and nine months ended September 30, 2021, we granted approximately 20,000 and 824,661 time-based RSUs with an aggregate fair value of approximately $30 thousand and $1.4 million, respectively. During the three and nine months ended September 30, 2022, we vested 112,985 and 492,805 RSUs compared to 55,788 and 421,740 RSUs vested during the three and nine months ended September 30, 2021. one GSE’s 1995 long-term incentive program (“LTIP”) provides for the issuance of performance-vesting and time-vesting restricted stock units to certain executives and employees. Vesting of the performance-vesting restricted stock units (“PRSU”) is contingent upon the employee’s continued employment and the Company’s achievement of certain performance goals during designated performance periods as established by the Compensation Committee of the Company’s Board of Directors. We recognize compensation expense, net of estimated forfeitures, for PRSUs on a straight-line basis over the performance period based on the probable outcome of achievement of the financial targets. At the end of each reporting period, we estimate the number of PRSUs that are expected to vest, based on the probability and extent to which the performance goals will be met, and take into account these estimates when calculating the expense for the period. If the number of shares expected to be earned changes during the performance period, we make a cumulative adjustment to compensation expense based on the revised number of shares expected to be earned. During the nine months ended September including 200,000 cash-settled grants to employees. These grants are subject to multiple vesting criteria including reaching a 20-day VWAP of $1.94 prior to the expiration of the awards, and a time-vesting restriction, which will vest in equal portions over the next 15 criteria was achieved in April 2022 for the 800,000 PRSUs which will fully vest over the next 13 quarters . During the three and nine months ended September no We did not grant any stock options for the three and nine months ended September

Debt

Debt	9 Months Ended
	Sep. 30, 2022
Debt [Abstract]
Debt	Note 10 - Debt Convertible Note On February 23, 2022, we entered into a Securities Purchase Agreement, as amended, with Lind Global Fund II LP (“Lind Global”), pursuant to which we issued to Lind Global a two-year, secured, interest-free convertible promissory note in the amount of $5.75 million (the “Convertible Note”) and a common stock purchase warrant to acquire 1,283,732 shares of our common stock (the “Warrant”). The Convertible Note does not bear interest but was issued at a $0.75 million discount (“OID”). We received proceeds of approximately $4.8 million net of the OID and expenses. Amount Convertible Note issued $ 5,750 Debt discount (750 ) Issuance cost: Commitment fee (175 ) Balance of investor’s counsel fees (43 ) Net proceeds of Convertible Note $ 4,782 Fair value of Warrant Liabilities on issuance (724 ) Fair value of Conversion Feature on issuance (306 ) Allocated OID costs to Convertible Note (96 ) Interest expense accrued on Convertible Note as of September 30, 2022 926 Principal and interest payments as of September 30, 2022 (639 ) Balance of Convertible Note as of September 30, 2022 $ 3,943 The Convertible Note provides for monthly principal repayments of $319 thousand beginning 180 days from issuance. Payments can be made in the form of cash, shares, or a combination of both at the discretion of GSE. The Convertible Note is convertible into our common stock at any time after the earlier of six months from issuance of the Convertible Note or the date of an effective registration statement filed with the SEC covering the underlying shares. The conversion price of the Convertible Note is initially equal to $1.94 per share, subject to customary adjustments. The Convertible Note matures in February of 2024 one third A portion of the proceeds of the Convertible Note were used to repay, in full, all outstanding indebtedness owed to Citizens Bank, N.A. (“Citizens”), and the Amended and Restated Credit and Security Agreement between us, our subsidiaries, and Citizens was terminated. We will continue to maintain a cash management account and certain letters of credit with Citizens and, accordingly, have entered into a certain Cash Management Agreement with Citizens, as well as certain Cash Pledge Agreements in amounts corresponding to the current outstanding letters of credits with customers. The Warrant entitles Lind Global to purchase up to 1,283,732 shares of our common stock until February 23, 2027, at an exercise price of $1.94 per share, subject to customary adjustments described therein. The Warrant is recorded at fair value upon issuance of $0.7 million and is classified as a current liability to be remeasured at each reporting period (see Note 8). The discount created by allocating proceeds to the Warrant results in a debt discount to be amortized as additional interest expense over the term of the Convertible Note. The Company evaluated the Convertible Note and concluded that certain embedded redemption features are required to be accounted for as a derivative liability. Embedded redemption features were recorded at fair value upon issuance of $0.3 million and are classified as current liabilities to be remeasured at each reporting period ( see The direct and incremental costs incurred are allocated to the Convertible Note and the Warrant based on a systematic and rational approach. The costs allocated to the Warrant have been expensed as incurred while those allocated to the Convertible Note have been capitalized and will be amortized as interest expense over the life of the Convertible Note based on the effective interest rate. The Company will record ongoing changes to the fair value of the derivative liabilities as other non-operating income (expense). The Convertible Note was evaluated as a potentially dilutive security in both periods of loss and income for diluted earnings per share purposes. The Warrant is considered a participating security and was not included in the calculation of basic earnings per share for the period ended September 30, 2022 as Company reflected net loss for this period. The Warrant will be included in the calculation of basic earnings per share in periods of net income. The issuance costs with respect to the Convertible Note, which are recorded as a debt discount, are deferred and amortized using effective interest method as additional interest expense over the terms of the Convertible Note. The Company incurred total interest expense related to the Convertible Note, including the amortization of the various discounts, of $443 thousand and $926 thousand for the three and nine months ended September 30, 2022, respectively. Revolving Line of Credit On March 29, 2021, we signed the Ninth Amendment and Reaffirmation Agreement with an effective date of March 29, 2021. Pursuant to the Ninth Amendment and Reaffirmation Agreement, the Bank waived the fixed charge coverage ratio and leverage ratio for the quarters ended March 31 and June 30, 2021, and we agreed, for each quarter thereafter, that the fixed charge coverage ratio shall not be less than 1.10 to 1.00. In addition, we agreed to not exceed a maximum leverage ratio starting on September 30, 2021. We were also required to maintain a minimum of $2.5 million in aggregate USA liquidity. As part of the amendment, we agreed, at closing, (i) to make a $0.5 million pay down of RLOC; (ii) RLOC commitment to be reduced to $4.25 million; and (iii) $0.5 million of RLOC will only be available for issuance of Letters of Credit. We also agreed to pay $0.5 million to reduce RLOC to $3.75 million by June 30, 2021 and to $3.5 million by September 30, 2021. Commencing December 31, 2021 and on the last day of each quarter, we will pay $75 thousand to reduce the RLOC. We incurred $25 thousand fees related to this amendment during the year ended December 31, 2021. On November 12, 2021, we signed the Tenth Amendment and Reaffirmation Agreement with our bank to waive the fixed charge coverage ratio and leverage ratio for the quarters ending September 30 and December 31, 2021, and we agreed, (i) interest on the outstanding principal amount of the RLOC shall accrue at the interest rate in effect for the RLOC from time to time, but the interest due and payable on the RLOC on each Interest Payment Date shall be determined by subtracting seventy-five (75) basis points from the Applicable Margin and (ii) the seventy-five (75) basis points of accrued interest on the RLOC not paid on any Interest Payment Date pursuant to clause (i) above shall be due and payable on the Termination Date or the date of payment in full of the RLOC. In addition, we agreed, by December 31, 2021, to pay the Bank $0.25 million to be applied to the principal amount outstanding under the RLOC. We incurred $15 thousand of amendment fee related to this amendment. During the nine months ended September 30, 2022, using proceeds from the Convertible Note, we repaid in full, all outstanding indebtedness of $1.8 million owed to Citizens, and the Amended and Restated Credit and Security Agreement between us, our subsidiaries, and Citizens has been terminated. Certain letters of credit remain in place with Citizens. As of September 30, 2022, we had four letters of credit totaling $1.1 million outstanding to certain customers which were secured with restricted cash.

Product Warranty

Product Warranty	9 Months Ended
	Sep. 30, 2022
Product Warranty [Abstract]
Product Warranty	Note 11 - Product Warranty We accrue for estimated warranty costs at the time the related revenue is recognized and based on historical experience and projected claims. Our System Design and Build contracts generally include a one year base warranty on the systems. The portion of our warranty provision expected to be incurred within 12 months is classified as current within accrued warranty and totals $478 thousand, and the remaining $99 thousand is classified as long-term within other non-current liabilities. The activity in the accrued warranty accounts during the current period is as follows: (in thousands) Balance at January 1, 2022 $ 748 Current period recovery (3 ) Current period claims (158 ) Currency adjustment (10 ) Balance at September 30, 2022 $ 577

Revenue

Revenue	9 Months Ended
	Sep. 30, 2022
Revenue [Abstract]
Revenue	Note 12 - Revenue We account for revenue in accordance with ASC 606, Revenue from Contracts with Customers. We primarily generate revenue through three distinct revenue streams: (1) System Design and Build (“SDB”), (2) Software and (3) Training and Consulting Services across our Performance and Workforce Solutions segments. We recognize revenue from SDB and software contracts mainly through our Performance segment. We recognize training and consulting service contracts through both segments. The following table represents a disaggregation of revenue by type of goods or services for the three and nine months ended September 30, 2022 and 2021, along with the reporting segment for each category: (in thousands) Three months ended Nine months ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Performance Improvement Solutions segment System Design and Build $ 1,537 $ 1,623 $ 4,991 $ 4,712 Over time 1,537 1,623 4,991 4,712 Software and Support 2,010 814 3,560 2,393 Point in time 530 52 662 274 Over time 1,480 762 2,898 2,119 Training and Consulting Services 4,505 4,937 13,851 14,212 Point in time 195 42 1,340 126 Over time 4,310 4,895 12,511 14,086 Workforce Solutions Training and Consulting Services 3,846 7,312 14,516 19,995 Point in time 52 126 52 375 Over time 3,794 7,186 14,464 19,620 Total revenue $ 11,898 $ 14,686 $ 36,918 $ 41,312 The following table reflects revenue recognized in the reporting periods presented that was included in contract liabilities from contracts with customers as of the beginning of the periods presented: ( in thousands Three months ended Nine months ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Revenue recognized in the period from amounts included in billings in excess of revenue earned at the beginning of the period $ 174 $ 835 $ 2,666 $ 4,139

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2022
Income Taxes [Abstract]
Income Taxes	Note 13 - Income Taxes The following table presents the provision for income taxes and our effective tax rates: (in thousands) Three months ended Nine months ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 (Loss) income before income taxes $ (9,210 ) $ 11,604 $ (13,935 ) $ 12,591 (Benefit from) provision for income taxes (218 ) 166 (108 ) 127 Effective tax rate 2.37 % 1.4 % 0.78 % 1.0 % Our income tax expense for the interim periods presented is determined using an estimate of our annual effective tax rate, adjusted for discrete items arising in that quarter. Total income tax expense for the three and nine months ended September 30, 2022 was comprised mainly of current foreign tax benefit, deferred federal and state tax benefit related to the portion of goodwill which cannot be offset by deferred tax assets and state tax expense. Total income tax expense for the three and nine months ended September 30, 2021 was comprised mainly of current state and foreign tax expense. Our effective income tax rate was 2.37% and 0.78% for the three and nine months ended September 30, 2022, respectively. For the three and nine months ended September 30, 2022, the difference between our income tax benefit at an effective tax rate of 2.37% and 0.78% respectively, and the U.S. statutory federal income tax rate of 21% was primarily due to accruals related to uncertain tax positions for certain foreign tax contingencies, a change in valuation allowance in our U.S. entity, the permanent disallowance of interest expense related to disqualified debt, and discrete item adjustments for U.S. and foreign taxes. For the three and nine months ended September 30, 2021, the difference between our income tax expense at an effective rate of 1.4% and 1.0% respectively, and the U.S. statutory federal income tax rate of 21% was primarily due to accruals related to uncertain tax positions for certain foreign tax contingencies, a change in tax valuation allowance in our U.S. entity, and discrete item adjustments for U.S. and foreign taxes. Because of our net operating loss carryforwards, we are subject to U.S. federal and state income tax examinations from the year 2000 and forward and are subject to foreign tax examinations by tax authorities for years 2016 and forward. An uncertain tax position taken or expected to be taken in a tax return is recognized in the consolidated financial statements when it is more likely than not (i.e., a likelihood of more than 50%) that the position would be sustained upon examination by tax authorities that have full knowledge of all relevant information. A recognized tax position is then measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. Interest and penalties related to income taxes are accounted for as income tax expense. We recognize deferred tax assets to the extent that it is believed that these assets are more likely than not to be realized. We have evaluated all positive and negative evidence and determined that we will continue to assess a full valuation allowance on our U.S., China, and Slovakia net deferred assets as of September 30, 2022. We have determined that it is not more likely than not that the Company will realize the benefits of its deferred taxes in the U.S. and foreign jurisdictions. The Company has a deferred tax liability in the amount of $13 thousand at September 30, 2022 related to the portion of Goodwill which cannot be offset by deferred tax assets.

Leases

Leases	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
Leases	Note 14 - Leases We have lease agreements with lease and non-lease components, which are accounted for as a single lease. We apply a portfolio approach to effectively account for the operating lease ROU assets and liabilities. Lease contracts are evaluated at inception to determine whether they contain a lease and whether we obtain the right to control an identified asset. The following table summarizes the classification of operating ROU assets and lease liabilities on the consolidated balance sheets: (in thousands) As of Operating Leases Classification September 30, December 31, 2021 Leased Assets Operating lease - right of use assets Long term assets $ 777 $ 1,200 Lease Liabilities Operating lease liabilities - Current Other current liabilities 965 1,205 Operating lease liabilities Long term liabilities 209 790 $ 1,174 $ 1,995 We entered into a lease agreement to lease 2,200 square feet of office space on September 26, 2022, and the lease term will be end on November 30, 2024. We executed a sublease agreement with a tenant to sublease 850 square feet from the Sykesville office space on September 13, 2021. This agreement is in addition to the previous sublease for 3,650 square feet entered into on May 1, 2019. The addition of the second sublease is for a portion of the space previously abandoned in December 2019. The sublease does not relieve us of our primary lease obligation. The lease agreements are all considered operating leases, maintaining the historical classification of the underlying lease. We do not recognize any underlying assets for the subleases as a lessor of operating leases. The net amount received from the sublease is recorded within selling, general and administrative expenses. The table below summarizes lease income and expense recorded in the consolidated statements of operations incurred during the three and nine months ended September 30, 2022 and 2021, ( in thousands Three months ended Nine months ended Lease Cost Classification September 30, September 30, 2021 September 30, 2022 September 30, 2021 Operating lease cost (1) Selling, general and administrative expenses $ 174 $ 179 $ 534 $ 548 Short-term leases costs (2) Selling, general and administrative expenses 15 15 45 45 Sublease income (3) Selling, general and administrative expenses (18 ) (32 ) (55 ) (96 ) Net lease cost $ 171 $ 162 $ 524 $ 497 (1) Includes variable lease costs which are immaterial. (2) Includes leases maturing less than twelve months from the report date. (3) Sublease portfolio consists of two tenants, which sublease parts of our principal executive office located at 1332 Londontown Blvd, Suite 200, Sykesville, MD. The Company is obligated under certain noncancelable operating leases for office facilities and equipment. Future minimum lease payments under noncancelable operating leases as of September 30, 2022 are as follows: (in thousands) Gross Future Minimum Lease Payments 2022 remainder $ 347 2023 701 2024 151 2025 10 2026 3 Thereafter - Total lease payments $ 1,212 Less: Interest 38 Present value of lease payments $ 1,174 We calculated the weighted-average remaining lease term, presented in years below and the weighted-average discount rate for our operating leases, and we use the incremental borrowing rate as the lease discount rate. Lease Term and Discount Rate September 30, 2022 December 31, 2021 Weighted-average remaining lease term (years) Operating leases 1.22 1.80 Weighted-average discount rate Operating leases 5.00 % 5.00 % The table below sets out the classification of lease payments in the consolidated statement of cash flows. (in thousands) Nine months ended Cash paid for amounts included in measurement of liabilities September 30, 2022 September 30, 2021 Operating cash flows used in operating leases $ 934 $ 958

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2022
Segment Information [Abstract]
Segment Information	Note 15 - Segment Information We have two reportable business segments. The Performance Improvement Solutions segment provides simulation, training and engineering products and services delivered across the breadth of industries we serve. Solutions include simulation for both training and engineering applications. Example engineering services include, but are not limited to, plant design verification and validation, thermal performance evaluation and optimization programs, and engineering programs for plants for American Society of Mechanical Engineers ("ASME") code and ASME Section XI. The Company provides these services across all market segments through our Performance, True North consulting, and DP Engineering subsidiaries. Example trai ning applications include turnkey and custom training services. Contract terms are typically less than two years. Workforce Solutions segment provides specialized workforce solutions primarily to the nuclear industry, working at clients’ facilities. This business is managed through our Hyperspring and Absolute subsidiaries. The business model, management focus, margins and other factors clearly separate this business line from the rest of the GSE product and service portfolio. The following table sets forth the revenue and operating results attributable to each reportable segment and includes a reconciliation of segment revenue to consolidated revenue and operating results to consolidated income before income taxes. Inter-segment revenue is eliminated in consolidation and is not significant: Three months ended Nine months ended (in thousands) September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Revenue: Performance Improvement Solutions $ 8,052 $ 7,375 $ 22,402 $ 21,318 Workforce Solutions 3,846 7,311 14,516 19,994 Total revenue 11,898 14,686 36,918 41,312 Gross Profit Performance Improvement Solutions 2,654 2,252 7,037 6,204 Workforce Solutions 602 931 1,818 2,596 Total gross profit 3,256 3,183 8,855 8,800 Operating loss Performance Improvement Solutions (1,403 ) (469 ) (5,511 ) (3,003 ) Workforce Solutions (7,646 ) (110 ) (7,815 ) (1,124 ) Operating loss (9,049 ) (579 ) (13,326 ) (4,127 ) Interest expense, net (422 ) (32 ) (928 ) (135 ) Change in fair value of derivative instruments, net 263 - 377 - Other (loss) income, net (2 ) 12,215 (58 ) 16,853 (Loss) income before income taxes $ (9,210 ) $ 11,604 $ (13,935 ) $ 12,591 The operating loss above for the three and nine months ended September 30, 2022 includes goodwill and intangible asset impairment charge of $7.5 million for Workforce Solutions. There was no impairment recognized for the same periods in 2021 for Workforce Solutions. The operating loss above for the three and nine months ended September 30, 2021 includes impairment of ROU assets of $3 thousand for Performance Improvement Solutions. There was no impairment recognized for the same periods in 2022 for Performance Improvement Solutions.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 16 - Commitments and Contingencies Per ASC 450 Accounting for Contingencies , the Company reviews potential items and areas where a loss contingency could arise. In the opinion of management, we are not a party to any legal proceeding, the outcome of which, in management’s opinion, individually or in the aggregate, would have a material effect on our consolidated results of operations, financial position or cash flows. We expense legal defense costs as incurred.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2022
Summary of Significant Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation GSE Systems, Inc. is a leading provider of professional and technical engineering, staffing services and simulation software to clients in the power and process industries. References in this report to “GSE” or “we” or “our” or “the Company” are to GSE Systems, Inc. and our subsidiaries, collectively. The consolidated interim financial statements included herein have been prepared by GSE and are unaudited. In the opinion of our management, all adjustments and reclassifications of a normal and recurring nature necessary to present fairly the financial position, results of operations and cash flows for the periods presented, have been made. Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted. All intercompany accounts and transactions have been eliminated in consolidation. The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. The accompanying balance sheet data for the year ended December 31, 2021 was derived from our audited financial statements, but it does not include all disclosures required by U.S. GAAP. The results of operations for interim periods are not necessarily an indication of the results for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the U.S. Securities and Exchange Commission on March 31, 2022. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as reported amounts of revenues and expenses during the reporting period. Our most significant estimates relate to revenue recognition on contracts with customers, product warranties, valuation of goodwill and intangible assets acquired including the determination of fair value in impairment tests, valuation of long-lived assets to be disposed of, valuation of stock-based compensation awards, the recoverability of deferred tax assets, and valuation of warrants and derivative liability related to our convertible note. Actual results of these and other items not listed could differ from these estimates and those differences could be material.

Recent Accounting Pronounceme_2

Recent Accounting Pronouncements (Policies)	9 Months Ended
	Sep. 30, 2022
Recent Accounting Pronouncements [Abstract]
Accounting pronouncements recently adopted/not yet adopted	Accounting pronouncements recently adopted In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) Accounting pronouncements not yet adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses Management has evaluated other recently issued accounting pronouncements and does not believe that any of these pronouncements will have a significant impact on our consolidated financial statements and related disclosures.

Basic and Diluted (Loss) Inco_2

Basic and Diluted (Loss) Income per Share (Tables)	9 Months Ended
	Sep. 30, 2022
Basic and Diluted (Loss) Income per Share [Abstract]
(Loss) Income Per Share, Basic and Diluted	The number of common shares and common share equivalents used in the determination of basic and diluted (loss) income per common share were as follows: (in thousands, except for share data) Three months ended Nine months ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Numerator: Net (loss) income attributed to common stockholders $ (8,992 ) $ 11,438 $ (13,827 ) $ 12,464 Denominator: Weighted-average shares outstanding for basic earnings per share 21,288,883 20,863,479 21,101,942 20,714,068 Adjusted weighted-average shares outstanding and assumed conversions for diluted earnings per share 21,288,883 20,863,479 21,101,942 20,714,068 Shares related to potentially dilutive securities excluded because inclusion would be anti-dilutive 3,283,400 14,229 2,383,171 77,871

Contract Receivables (Tables)

Contract Receivables (Tables)	9 Months Ended
	Sep. 30, 2022
Contract Receivables [Abstract]
Contract Receivables	The components of contract receivables were as follows: (in thousands) September 30, 2022 December 31, 2021 Billed receivables $ 5,512 $ 6,124 Unbilled receivables 5,648 6,143 Allowance for doubtful accounts (1,008 ) (1,010 ) Total contract receivables, net $ 10,152 $ 11,257

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2022
Goodwill and Intangible Assets [Abstract]
Net Carrying Amount of Goodwill	Goodwill (in thousands) Goodwill Impairment Net Performance Improvement Solutions $ 8,278 $ (3,370 ) $ 4,908 Workforce Solutions 8,431 (7,040 ) 1,391 Net book value at September 30, 2022 $ 16,709 $ (10,410 ) $ 6,299 (in thousands) Goodwill Impairment Net Performance Improvement Solutions $ 8,278 $ (3,370 ) $ 4,908 Workforce Solutions 8,431 - 8,431 Net book value at December 31, 2021 $ 16,709 $ (3,370 ) $ 13,339
Schedule of Acquired Finite-Lived Intangible Assets by Major Class	The following table shows the gross carrying amount and accumulated amortization of definite-lived intangible assets: (in thousands) As of September 30, 2022 Gross Carrying Amount Accumulated Amortization Impairment Net Amortized intangible assets: Customer relationships $ 8,628 $ (6,940 ) $ (464 ) $ 1,224 Trade names 1,689 (1,174 ) - 515 Developed technology 471 (471 ) - - Non-contractual customer relationships 433 (433 ) - - Noncompete agreement 527 (477 ) - 50 Alliance agreement 527 (462 ) - 65 Others 167 (167 ) - - Total $ 12,442 $ (10,124 ) $ (464 ) $ 1,854 (in thousands) As of December 31, 2021 Gross Carrying Amount Accumulated Amortization Net Amortized intangible assets: Customer relationships $ 8,628 $ (6,432 ) $ 2,196 Trade names 1,689 (1,108 ) 581 Developed technology 471 (471 ) - Non-contractual customer relationships 433 (433 ) - Noncompete agreement 527 (429 ) 98 Alliance agreement 527 (382 ) 145 Others 167 (167 ) - Total $ 12,442 $ (9,422 ) $ 3,020
Finite-Lived Intangible Assets, Future Amortization Expense	The following table shows the estimated amortization expense of the definite-lived intangible assets for the next five years and thereafter: (in thousands) Years ended December 31: 2022 remainder $ 167 2023 508 2024 332 2025 255 2026 204 Thereafter 388 Total $ 1,854

Equipment, Software and Lease_2

Equipment, Software and Leasehold Improvements (Tables)	9 Months Ended
	Sep. 30, 2022
Equipment, Software and Leasehold Improvements [Abstract]
Equipment, Software and Leasehold Improvements	Equipment, software and leasehold improvements, net consist of the following: (in thousands) September 30, 2022 December 31, 2021 Computer and equipment $ 2,323 $ 2,270 Software 2,263 2,150 Leasehold improvements 659 659 Furniture and fixtures 838 839 6,083 5,918 Accumulated depreciation (5,287 ) (5,079 ) Equipment, software and leasehold improvements, net $ 796 $ 839

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2022
Fair Value of Financial Instruments [Abstract]
Level 3 Fair Value Measurement Inputs	The Company used the Monte Carlo simulation model to determine the fair value of the Warrants and Cash-Settled PRSUs, which required the input of subjective assumptions. The fair value of the Warrants as of September 30, 2022 was estimated with the following assumptions. Exercise Price $ 1.94 Common Stock Price $ 0.90 Risk Free Rate 4.0 % Volatility 65.0 % Term (in years) 4.4 yrs.
Assets and Liabilities Measured at Fair Value	The following table presents assets and liabilities measured at fair value at September (in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Derivative liability $ - $ - $ 237 $ 237 Warrant liability - - 416 416 Cash settled performance-vesting restricted stock units - - 56 56 Total liabilities $ - $ - $ 709 $ 709
Changes in Fair Value of Level 3 Liabilities	The following table summarizes changes in the fair value of our Level 3 liabilities during the nine months ended September (in thousands) Embedded Redemption Features Warrant Cash Settled PRSUs Level 3 Total Balance at December 31, 2021 $ - $ - $ - $ - Derivative liabilities at issuance date 306 - - 306 Warrant liabilities at issuance date - 724 - 724 Change in fair value included in gain on derivative instruments, net (69 ) (308 ) - (377 ) Fair value of cash settled PRSUs vested - - 87 87 Cash paid on vested shares - - (31 ) (31 ) Balance at September $ 237 $ 416 $ 56 $ 709

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2022
Debt [Abstract]
Convertible Note	On February 23, 2022, we entered into a Securities Purchase Agreement, as amended, with Lind Global Fund II LP (“Lind Global”), pursuant to which we issued to Lind Global a two-year, secured, interest-free convertible promissory note in the amount of $5.75 million (the “Convertible Note”) and a common stock purchase warrant to acquire 1,283,732 shares of our common stock (the “Warrant”). The Convertible Note does not bear interest but was issued at a $0.75 million discount (“OID”). We received proceeds of approximately $4.8 million net of the OID and expenses. Amount Convertible Note issued $ 5,750 Debt discount (750 ) Issuance cost: Commitment fee (175 ) Balance of investor’s counsel fees (43 ) Net proceeds of Convertible Note $ 4,782 Fair value of Warrant Liabilities on issuance (724 ) Fair value of Conversion Feature on issuance (306 ) Allocated OID costs to Convertible Note (96 ) Interest expense accrued on Convertible Note as of September 30, 2022 926 Principal and interest payments as of September 30, 2022 (639 ) Balance of Convertible Note as of September 30, 2022 $ 3,943

Product Warranty (Tables)

Product Warranty (Tables)	9 Months Ended
	Sep. 30, 2022
Product Warranty [Abstract]
Activities in the Accrued Warranty Accounts	The activity in the accrued warranty accounts during the current period is as follows: (in thousands) Balance at January 1, 2022 $ 748 Current period recovery (3 ) Current period claims (158 ) Currency adjustment (10 ) Balance at September 30, 2022 $ 577

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Sep. 30, 2022
Revenue [Abstract]
Disaggregation of Revenue	The following table represents a disaggregation of revenue by type of goods or services for the three and nine months ended September 30, 2022 and 2021, along with the reporting segment for each category: (in thousands) Three months ended Nine months ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Performance Improvement Solutions segment System Design and Build $ 1,537 $ 1,623 $ 4,991 $ 4,712 Over time 1,537 1,623 4,991 4,712 Software and Support 2,010 814 3,560 2,393 Point in time 530 52 662 274 Over time 1,480 762 2,898 2,119 Training and Consulting Services 4,505 4,937 13,851 14,212 Point in time 195 42 1,340 126 Over time 4,310 4,895 12,511 14,086 Workforce Solutions Training and Consulting Services 3,846 7,312 14,516 19,995 Point in time 52 126 52 375 Over time 3,794 7,186 14,464 19,620 Total revenue $ 11,898 $ 14,686 $ 36,918 $ 41,312
Balance of Contract Liabilities and Revenue Recognized in Reporting Period	The following table reflects revenue recognized in the reporting periods presented that was included in contract liabilities from contracts with customers as of the beginning of the periods presented: ( in thousands Three months ended Nine months ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Revenue recognized in the period from amounts included in billings in excess of revenue earned at the beginning of the period $ 174 $ 835 $ 2,666 $ 4,139

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2022
Income Taxes [Abstract]
Provision for (Benefit from) Income Taxes	The following table presents the provision for income taxes and our effective tax rates: (in thousands) Three months ended Nine months ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 (Loss) income before income taxes $ (9,210 ) $ 11,604 $ (13,935 ) $ 12,591 (Benefit from) provision for income taxes (218 ) 166 (108 ) 127 Effective tax rate 2.37 % 1.4 % 0.78 % 1.0 %

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
Classification of Operating ROU Assets and Lease Liabilities on the Balance Sheet	Lease contracts are evaluated at inception to determine whether they contain a lease and whether we obtain the right to control an identified asset. The following table summarizes the classification of operating ROU assets and lease liabilities on the consolidated balance sheets: (in thousands) As of Operating Leases Classification September 30, December 31, 2021 Leased Assets Operating lease - right of use assets Long term assets $ 777 $ 1,200 Lease Liabilities Operating lease liabilities - Current Other current liabilities 965 1,205 Operating lease liabilities Long term liabilities 209 790 $ 1,174 $ 1,995
Lease Income and Expenses	The table below summarizes lease income and expense recorded in the consolidated statements of operations incurred during the three and nine months ended September 30, 2022 and 2021, ( in thousands Three months ended Nine months ended Lease Cost Classification September 30, September 30, 2021 September 30, 2022 September 30, 2021 Operating lease cost (1) Selling, general and administrative expenses $ 174 $ 179 $ 534 $ 548 Short-term leases costs (2) Selling, general and administrative expenses 15 15 45 45 Sublease income (3) Selling, general and administrative expenses (18 ) (32 ) (55 ) (96 ) Net lease cost $ 171 $ 162 $ 524 $ 497 (1) Includes variable lease costs which are immaterial. (2) Includes leases maturing less than twelve months from the report date. (3) Sublease portfolio consists of two tenants, which sublease parts of our principal executive office located at 1332 Londontown Blvd, Suite 200, Sykesville, MD.
Future Minimum Lease Payments	The Company is obligated under certain noncancelable operating leases for office facilities and equipment. Future minimum lease payments under noncancelable operating leases as of September 30, 2022 are as follows: (in thousands) Gross Future Minimum Lease Payments 2022 remainder $ 347 2023 701 2024 151 2025 10 2026 3 Thereafter - Total lease payments $ 1,212 Less: Interest 38 Present value of lease payments $ 1,174
Operating Lease Weighted Average Remaining Lease Term And Discount Rate	We calculated the weighted-average remaining lease term, presented in years below and the weighted-average discount rate for our operating leases, and we use the incremental borrowing rate as the lease discount rate. Lease Term and Discount Rate September 30, 2022 December 31, 2021 Weighted-average remaining lease term (years) Operating leases 1.22 1.80 Weighted-average discount rate Operating leases 5.00 % 5.00 %
Classification of Lease Payments in the Statement of Cash Flows	The table below sets out the classification of lease payments in the consolidated statement of cash flows. (in thousands) Nine months ended Cash paid for amounts included in measurement of liabilities September 30, 2022 September 30, 2021 Operating cash flows used in operating leases $ 934 $ 958

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2022
Segment Information [Abstract]
Reconciliation of Segment Revenue to Consolidated Revenue and Operating Results to Consolidated Income Before Income Taxes	The following table sets forth the revenue and operating results attributable to each reportable segment and includes a reconciliation of segment revenue to consolidated revenue and operating results to consolidated income before income taxes. Inter-segment revenue is eliminated in consolidation and is not significant: Three months ended Nine months ended (in thousands) September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Revenue: Performance Improvement Solutions $ 8,052 $ 7,375 $ 22,402 $ 21,318 Workforce Solutions 3,846 7,311 14,516 19,994 Total revenue 11,898 14,686 36,918 41,312 Gross Profit Performance Improvement Solutions 2,654 2,252 7,037 6,204 Workforce Solutions 602 931 1,818 2,596 Total gross profit 3,256 3,183 8,855 8,800 Operating loss Performance Improvement Solutions (1,403 ) (469 ) (5,511 ) (3,003 ) Workforce Solutions (7,646 ) (110 ) (7,815 ) (1,124 ) Operating loss (9,049 ) (579 ) (13,326 ) (4,127 ) Interest expense, net (422 ) (32 ) (928 ) (135 ) Change in fair value of derivative instruments, net 263 - 377 - Other (loss) income, net (2 ) 12,215 (58 ) 16,853 (Loss) income before income taxes $ (9,210 ) $ 11,604 $ (13,935 ) $ 12,591

Basic and Diluted (Loss) Inco_3

Basic and Diluted (Loss) Income per Share (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Numerator [Abstract]
Net (loss) income attributed to common stockholders	$ (8,992)	$ 11,438	$ (13,827)	$ 12,464
Denominator [Abstract]
Weighted-average shares outstanding for basic earnings per share (in shares)	21,288,883	20,863,479	21,101,942	20,714,068
Effect of dilutive securities [Abstract]
Adjusted weighted-average shares outstanding and assumed conversions for diluted earnings per share (in shares)	21,288,883	20,863,479	21,101,942	20,714,068
Shares related to potentially dilutive securities excluded because inclusion would be anti-dilutive (in shares)	3,283,400	14,229	2,383,171	77,871

Coronavirus Aid, Relief and E_2

Coronavirus Aid, Relief and Economic Security Act (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Oct. 31, 2022	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Employee Retention Credits [Abstract]
Tax benefit recognized		$ (218)	$ 166	$ (108)	$ 127
Paycheck Protection Program [Member]
Debt Instruments [Abstract]
Other income			$ 10,100
Paycheck Protection Program Loan [Abstract]
Amount received from Paycheck Protection Program		$ 10,000		$ 10,000
Interest rate		1%		1%
Employee Retention Credits [Member]
Debt Instruments [Abstract]
Other income						$ 7,200
Employee Retention Credits [Abstract]
Refund of employee retention credit						5,000
Tax benefit recognized						$ 2,200
Tax credit refunds received		$ 0
Employee retention credits received		3,600		$ 3,600
Refund of employee retention credit receivable		$ 1,400		$ 1,400
Employee Retention Credits [Member] | Subsequent Event [Member]
Employee Retention Credits [Abstract]
Tax credit refunds received	$ 400

Contract Receivables (Details)

Contract Receivables (Details) $ in Thousands		3 Months Ended		9 Months Ended
	Oct. 31, 2022 USD ($)	Sep. 30, 2022 USD ($) Customer	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) Customer	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($) Customer
Components of contract receivables [Abstract]
Billed receivables		$ 5,512		$ 5,512		$ 6,124
Unbilled receivables		5,648		5,648		6,143
Allowance for doubtful accounts		(1,008)		(1,008)		(1,010)
Total contract receivables, net		10,152		10,152		$ 11,257
Bad debt expense (recovery)		0	$ 0	97	$ (133)
Gain (loss) on foreign exchange contracts		$ 4	$ 6	$ (51)	$ 27
Subsequent Event [Member]
Unbilled Contract Receivables [Abstract]
Subsequent billing	$ 2,500
Contract Receivable [Member]
Concentration Risk [Abstract]
Number of customers accounting for contract receivables | Customer		0		0		0

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Goodwill, Impaired [Abstract]
Goodwill	$ 16,709		$ 16,709		$ 16,709
Impairment	(10,410)		(10,410)		(3,370)
Net	6,299		6,299		13,339
Amortized Intangible Assets [Abstract]
Gross carrying amount	12,442		12,442		12,442
Accumulated amortization	(10,124)		(10,124)		(9,422)
Impairment			(464)
Net	1,854		1,854		3,020
Amortization of intangible assets	209	$ 286	700	$ 929
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2022 remainder	167		167
2023	508		508
2024	332		332
2025	255		255
2026	204		204
Thereafter	388		388
Total	1,854		1,854		3,020
Customer Relationships [Member]
Amortized Intangible Assets [Abstract]
Gross carrying amount	8,628		8,628		8,628
Accumulated amortization	(6,940)		(6,940)		(6,432)
Impairment			(464)
Net	1,224		1,224		2,196
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Total	1,224		1,224		2,196
Trade Names [Member]
Amortized Intangible Assets [Abstract]
Gross carrying amount	1,689		1,689		1,689
Accumulated amortization	(1,174)		(1,174)		(1,108)
Impairment			0
Net	515		515		581
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Total	515		515		581
Developed Technology [Member]
Amortized Intangible Assets [Abstract]
Gross carrying amount	471		471		471
Accumulated amortization	(471)		(471)		(471)
Impairment			0
Net	0		0		0
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Total	0		0		0
Non-Contractual Customer Relationships [Member]
Amortized Intangible Assets [Abstract]
Gross carrying amount	433		433		433
Accumulated amortization	(433)		(433)		(433)
Impairment			0
Net	0		0		0
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Total	0		0		0
Noncompete Agreement [Member]
Amortized Intangible Assets [Abstract]
Gross carrying amount	527		527		527
Accumulated amortization	(477)		(477)		(429)
Impairment			0
Net	50		50		98
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Total	50		50		98
Alliance Agreement [Member]
Amortized Intangible Assets [Abstract]
Gross carrying amount	527		527		527
Accumulated amortization	(462)		(462)		(382)
Impairment			0
Net	65		65		145
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Total	65		65		145
Others [Member]
Amortized Intangible Assets [Abstract]
Gross carrying amount	167		167		167
Accumulated amortization	(167)		(167)		(167)
Impairment			0
Net	0		0		0
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Total	0		0		0
Performance Improvement Solutions [Member]
Goodwill, Impaired [Abstract]
Goodwill	8,278		8,278		8,278
Impairment	(3,370)		(3,370)		(3,370)
Net	4,908		4,908		4,908
Workforce Solutions [Member]
Goodwill, Impaired [Abstract]
Goodwill	8,431		8,431		8,431
Impairment	(7,040)		(7,040)		0
Net	$ 1,391		$ 1,391		$ 8,431

Equipment, Software and Lease_3

Equipment, Software and Leasehold Improvements (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Equipment, Software and Leasehold Improvements, Net [Abstract]
Equipment, software and leasehold improvements	$ 6,083		$ 6,083		$ 5,918
Accumulated depreciation	(5,287)		(5,287)		(5,079)
Equipment, software and leasehold improvements, net	796		796		839
Depreciation expense	69	$ 69	213	$ 216
Computer and Equipment [Member]
Equipment, Software and Leasehold Improvements, Net [Abstract]
Equipment, software and leasehold improvements	2,323		2,323		2,270
Software [Member]
Equipment, Software and Leasehold Improvements, Net [Abstract]
Equipment, software and leasehold improvements	2,263		2,263		2,150
Capitalization of internal-use software cost	37	$ 50	114	$ 365
Leasehold Improvements [Member]
Equipment, Software and Leasehold Improvements, Net [Abstract]
Equipment, software and leasehold improvements	659		659		659
Furniture and Fixtures [Member]
Equipment, Software and Leasehold Improvements, Net [Abstract]
Equipment, software and leasehold improvements	$ 838		$ 838		$ 839

Fair Value of Financial Instr_3

Fair Value of Financial Instruments (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($) $ / shares
Assets and Liabilities Measured at Fair Value [Abstract]
Total liabilities	$ 709
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets and Liabilities Measured at Fair Value [Abstract]
Total liabilities	0
Significant Other Observable Inputs (Level 2) [Member]
Assets and Liabilities Measured at Fair Value [Abstract]
Total liabilities	0
Significant Unobservable Inputs (Level 3) [Member]
Assets and Liabilities Measured at Fair Value [Abstract]
Total liabilities	709
Changes in Fair Value of Level 3 Liabilities [Abstract]
Balance, Beginning Period	0
Derivative liabilities at issuance date	306
Warrant liabilities at issuance date	724
Change in fair value included in gain on derivative instruments, net	(377)
Fair value of cash settled PRSUs vested	87
Cash paid on vested shares	(31)
Balance, Ending Period	709
Embedded Redemption Features [Member]
Changes in Fair Value of Level 3 Liabilities [Abstract]
Warrant liabilities at issuance date	306
Embedded Redemption Features [Member] | Significant Unobservable Inputs (Level 3) [Member]
Changes in Fair Value of Level 3 Liabilities [Abstract]
Balance, Beginning Period	0
Derivative liabilities at issuance date	306
Warrant liabilities at issuance date	0
Change in fair value included in gain on derivative instruments, net	(69)
Fair value of cash settled PRSUs vested	0
Cash paid on vested shares	0
Balance, Ending Period	237
Cash Settled Performance-Vesting Restricted Stock Units [Member]
Assets and Liabilities Measured at Fair Value [Abstract]
Total liabilities	56
Cash Settled Performance-Vesting Restricted Stock Units [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets and Liabilities Measured at Fair Value [Abstract]
Total liabilities	0
Cash Settled Performance-Vesting Restricted Stock Units [Member] | Significant Other Observable Inputs (Level 2) [Member]
Assets and Liabilities Measured at Fair Value [Abstract]
Total liabilities	0
Cash Settled Performance-Vesting Restricted Stock Units [Member] | Significant Unobservable Inputs (Level 3) [Member]
Assets and Liabilities Measured at Fair Value [Abstract]
Total liabilities	56
Changes in Fair Value of Level 3 Liabilities [Abstract]
Balance, Beginning Period	0
Derivative liabilities at issuance date	0
Warrant liabilities at issuance date	0
Change in fair value included in gain on derivative instruments, net	0
Fair value of cash settled PRSUs vested	87
Cash paid on vested shares	(31)
Balance, Ending Period	56
Derivative Liability [Member]
Assets and Liabilities Measured at Fair Value [Abstract]
Total liabilities	237
Derivative Liability [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets and Liabilities Measured at Fair Value [Abstract]
Total liabilities	0
Derivative Liability [Member] | Significant Other Observable Inputs (Level 2) [Member]
Assets and Liabilities Measured at Fair Value [Abstract]
Total liabilities	0
Derivative Liability [Member] | Significant Unobservable Inputs (Level 3) [Member]
Assets and Liabilities Measured at Fair Value [Abstract]
Total liabilities	237
Warrant Liability [Member]
Assets and Liabilities Measured at Fair Value [Abstract]
Total liabilities	$ 416
Fair Value Measurements [Abstract]
Term (in years)	4 years 4 months 24 days
Changes in Fair Value of Level 3 Liabilities [Abstract]
Derivative liabilities at issuance date	$ 724
Warrant Liability [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets and Liabilities Measured at Fair Value [Abstract]
Total liabilities	0
Warrant Liability [Member] | Significant Other Observable Inputs (Level 2) [Member]
Assets and Liabilities Measured at Fair Value [Abstract]
Total liabilities	0
Warrant Liability [Member] | Significant Unobservable Inputs (Level 3) [Member]
Assets and Liabilities Measured at Fair Value [Abstract]
Total liabilities	416
Changes in Fair Value of Level 3 Liabilities [Abstract]
Balance, Beginning Period	0
Derivative liabilities at issuance date	0
Warrant liabilities at issuance date	724
Change in fair value included in gain on derivative instruments, net	(308)
Fair value of cash settled PRSUs vested	0
Cash paid on vested shares	0
Balance, Ending Period	$ 416
Warrant Liability [Member] | Exercise Price [Member]
Fair Value Measurements [Abstract]
Measurement input | $ / shares	1.94
Warrant Liability [Member] | Common Stock Price [Member]
Fair Value Measurements [Abstract]
Measurement input | $ / shares	0.9
Warrant Liability [Member] | Risk Free Rate [Member]
Fair Value Measurements [Abstract]
Measurement input	0.04
Warrant Liability [Member] | Volatility [Member]
Fair Value Measurements [Abstract]
Measurement input	0.65

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) $ / shares in Units, $ in Thousands		1 Months Ended	3 Months Ended		9 Months Ended
	Feb. 23, 2022 d $ / shares	Apr. 30, 2022 qtr shares	Sep. 30, 2022 USD ($) $ / shares shares	Sep. 30, 2021 USD ($) shares	Sep. 30, 2022 USD ($) d qtr $ / shares shares	Sep. 30, 2021 USD ($) shares
Share-based Compensation [Abstract]
Stock options granted (in shares)			0	0	0	0
Convertible Note [Member]
Share-based Compensation [Abstract]
Number of trading days | d	20				20
Exercise price (in dollars per share) | $ / shares	$ 1.94		$ 1.94		$ 1.94
Stock Option [Member]
Share-based Compensation [Abstract]
Stock-based compensation expense | $			$ 500	$ 300	$ 1,500	$ 800
Restricted Stock Units [Member]
Share-based Compensation [Abstract]
Stock-based compensation expense | $					$ 200,000
Granted time-based RSUs (in shares)			0	20,000	960,250	824,661
Aggregate fair value for time-based RSUs | $				$ 30	$ 1,500	$ 1,400
Number of quarters time-based RSU's will vest quarterly | qtr					8
Granted performance-based RSUs (in shares)		800,000		0	800,000	0
RSUs vested (in shares)			112,985	55,788	492,805	421,740
Period to fully vest performance RSUs | qtr		13			15
Restricted Stock Units [Member] | Minimum [Member]
Share-based Compensation [Abstract]
Period in which time-based RSU's will vest annually in equal amounts					1 year
Restricted Stock Units [Member] | Maximum [Member]
Share-based Compensation [Abstract]
Period in which time-based RSU's will vest annually in equal amounts					3 years
PRSUs [Member]
Share-based Compensation [Abstract]
RSUs vested (in shares)			50,000	0	150,000	0
Cash Settled PRSUs [Member]
Share-based Compensation [Abstract]
RSUs vested (in shares)			12,500		37,500

Debt, Convertible Note (Details

Debt, Convertible Note (Details) $ / shares in Units, $ in Thousands		3 Months Ended	9 Months Ended
	Feb. 23, 2022 USD ($) d $ / shares shares	Sep. 30, 2022 USD ($) $ / shares	Sep. 30, 2022 USD ($) d $ / shares
Embedded Redemption Features [Member]
Convertible Debt [Abstract]
Fair value of Conversion Feature on issuance		$ (306)	$ (306)
Warrant Liability [Member]
Convertible Debt [Abstract]
Fair value of Warrant Liabilities on issuance		(724)	$ (724)
Convertible Note [Member]
Convertible Debt [Abstract]
Debt instrument term			2 years
Purchase of warrant to acquire shares of common stock (in shares) | shares	1,283,732
Convertible Note issued	$ 5,750
Debt discount	(750)
Net proceeds of Convertible Note	4,782
Allocated OID costs to Convertible Note		(96)	$ (96)
Interest expense accrued on Convertible Note		443	926
Principal and interest payments		(639)	(639)
Balance of Convertible Note		$ 3,943	$ 3,943
Frequency of periodic payment			monthly
Monthly principal repayments	$ 319
Period for repayment of convertible note from issuance	180 days
Period for conversion	6 months
Conversion price (in dollars per share) | $ / shares	$ 1.94
Maturity date			Feb. 29, 2024
Conversion ratio	0.33
Percentage of volume-weighted average price	80%
Average of trading days | d	3
Number of trading days | d	20		20
Exercise price (in dollars per share) | $ / shares	$ 1.94	$ 1.94	$ 1.94
Fair value	$ 700
Net proceeds from issuance of convertible note	4,800
Convertible Note [Member] | Commitment Fee [Member]
Convertible Debt [Abstract]
Issuance cost	(175)
Convertible Note [Member] | Investor's Counsel Fees [Member]
Convertible Debt [Abstract]
Issuance cost	$ (43)

Debt, Revolving Line of Credit

Debt, Revolving Line of Credit (Details) $ in Thousands		3 Months Ended	9 Months Ended		12 Months Ended
	Nov. 12, 2021 USD ($)	Mar. 29, 2021 USD ($)	Sep. 30, 2022 USD ($) Letter	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)	Jun. 30, 2021 USD ($)	Mar. 31, 2021 USD ($)
Line of Credit Facility [Abstract]
Repayment on line of credit			$ 1,817	$ 1,739
Ninth Amendment and Reaffirmation Agreement [Member]
Line of Credit Facility [Abstract]
Fixed charge coverage ratio						1.1	1.1
Amendment fee amount					$ 25
Revolving Credit Facility [Member]
Line of Credit Facility [Abstract]
Repayment on line of credit			$ 1,800
Number of letters of credit | Letter			4
Outstanding letter of credit balance			$ 1,100
Revolving Credit Facility [Member] | Ninth Amendment and Reaffirmation Agreement [Member]
Line of Credit Facility [Abstract]
Repayment on line of credit		$ 500
Liquidity		2,500
Line of credit				$ 3,500		$ 3,750	$ 4,250
Amount available at the reporting date		500			75
Periodic payment		$ 500
Revolving Credit Facility [Member] | Tenth Amendment and Reaffirmation Agreement [Member]
Line of Credit Facility [Abstract]
Periodic payment					$ 250
Amendment fee amount	$ 15
Basis points	0.75%

Product Warranty (Details)

Product Warranty (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($)
Product warranty provision [Abstract]
Warranty terms for SDB contracts	1 year
Accrued warranty, current	$ 478
Accrued warranty, noncurrent	99
Activities in product warranty account [Abstract]
Balance at beginning of period	748
Current period recovery	(3)
Current period claims	(158)
Currency adjustment	(10)
Balance at end of period	$ 577

Revenue (Details)

Revenue (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) Stream	Sep. 30, 2021 USD ($)
Disaggregation of Revenue [Abstract]
Revenue	$ 11,898	$ 14,686	$ 36,918	$ 41,312
Number of distinct revenue streams | Stream			3
Contract with Customer, Asset and Liability [Abstract]
Revenue recognized in the period from amounts included in billings in excess of revenue earned at the beginning of the period	174	835	$ 2,666	4,139
Performance Improvement Solutions [Member]
Disaggregation of Revenue [Abstract]
Revenue	8,052	7,375	22,402	21,318
Performance Improvement Solutions [Member] | System Design and Build [Member]
Disaggregation of Revenue [Abstract]
Revenue	1,537	1,623	4,991	4,712
Performance Improvement Solutions [Member] | System Design and Build [Member] | Over Time [Member]
Disaggregation of Revenue [Abstract]
Revenue	1,537	1,623	4,991	4,712
Performance Improvement Solutions [Member] | Software and Support [Member]
Disaggregation of Revenue [Abstract]
Revenue	2,010	814	3,560	2,393
Performance Improvement Solutions [Member] | Software and Support [Member] | Point in Time [Member]
Disaggregation of Revenue [Abstract]
Revenue	530	52	662	274
Performance Improvement Solutions [Member] | Software and Support [Member] | Over Time [Member]
Disaggregation of Revenue [Abstract]
Revenue	1,480	762	2,898	2,119
Performance Improvement Solutions [Member] | Training and Consulting [Member]
Disaggregation of Revenue [Abstract]
Revenue	4,505	4,937	13,851	14,212
Performance Improvement Solutions [Member] | Training and Consulting [Member] | Point in Time [Member]
Disaggregation of Revenue [Abstract]
Revenue	195	42	1,340	126
Performance Improvement Solutions [Member] | Training and Consulting [Member] | Over Time [Member]
Disaggregation of Revenue [Abstract]
Revenue	4,310	4,895	12,511	14,086
Workforce Solutions [Member]
Disaggregation of Revenue [Abstract]
Revenue	3,846	7,311	14,516	19,994
Workforce Solutions [Member] | Training and Consulting [Member]
Disaggregation of Revenue [Abstract]
Revenue	3,846	7,312	14,516	19,995
Workforce Solutions [Member] | Training and Consulting [Member] | Point in Time [Member]
Disaggregation of Revenue [Abstract]
Revenue	52	126	52	375
Workforce Solutions [Member] | Training and Consulting [Member] | Over Time [Member]
Disaggregation of Revenue [Abstract]
Revenue	$ 3,794	$ 7,186	$ 14,464	$ 19,620

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Taxes [Abstract]
(Loss) income before income taxes	$ (9,210)	$ 11,604	$ (13,935)	$ 12,591
(Benefit from) provision for income taxes	$ (218)	$ 166	$ (108)	$ 127
Effective tax rate	2.37%	1.40%	0.78%	1%
Statutory federal income tax rate	21%	21%	21%	21%
Income Tax Examination [Abstract]
Probability of uncertain tax position to be recognized			50%
Percentage of tax position realized upon ultimate settlement			50%
Deferred tax liability	$ 13		$ 13
Federal [Member]
Income Tax Examination [Abstract]
Income tax examination, year under examination			2000
State [Member]
Income Tax Examination [Abstract]
Income tax examination, year under examination			2000
Foreign [Member]
Income Tax Examination [Abstract]
Income tax examination, year under examination			2016

Leases (Details)

Leases (Details) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) ft² Tenant	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Leased Assets [Abstract]
Operating lease - right of use assets		$ 777		$ 777		$ 1,200
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]		Operating lease - right of use assets		Operating lease - right of use assets		Operating lease - right of use assets
Lease Liabilities [Abstract]
Operating lease liabilities - current		$ 965		$ 965		$ 1,205
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]		Other current liabilities		Other current liabilities		Other current liabilities
Operating lease liabilities		$ 209		$ 209		$ 790
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]		Operating lease liabilities		Operating lease liabilities		Operating lease liabilities
Lease liabilities		$ 1,174		$ 1,174		$ 1,995
Area of office space leased | ft²				2,200
Lease agreement date				Sep. 26, 2022
Lease expiration date				Nov. 30, 2024
Sublease Agreement [Abstract]
Sublease square feet | ft²				850
Sublease date				Sep. 13, 2021
Previously subleased square feet, one | ft²				3,650
Previous sublease date, one				May 01, 2019
Consolidated Statement of Operations Information [Abstract]
Operating lease cost	[1]	174	$ 179	$ 534	$ 548
Short-term leases costs	[2]	15	15	45	45
Sublease income	[3]	(18)	(32)	(55)	(96)
Net lease cost		171	$ 162	$ 524	497
Number of tenants | Tenant				2
Minimum Lease Payments [Abstract]
2022 remainder		347		$ 347
2023		701		701
2024		151		151
2025		10		10
2026		3		3
Thereafter		0		0
Total lease payments		1,212		1,212
Less: Interest		38		38
Present value of lease payments		$ 1,174		$ 1,174		$ 1,995
Lease Term and Discount Rate [Abstract]
Weighted-average remaining lease term (in years)		1 year 2 months 19 days		1 year 2 months 19 days		1 year 9 months 18 days
Weighted-average discount rate		5%		5%		5%
Cash paid for amounts included in measurement of liabilities [Abstract]
Operating cash flows used in operating leases				$ 934	$ 958
[1] Includes variable lease costs which are immaterial. Includes leases maturing less than twelve months from the report date.

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) Segment	Sep. 30, 2021 USD ($)
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]
Number of reportable business segments | Segment			2
Contract term			2 years
Goodwill and intangible asset impairment charge	$ 7,505	$ 3	$ 7,505	$ 3
Segment Reporting Information, Profit (Loss) [Abstract]
Revenue	11,898	14,686	36,918	41,312
Gross profit	3,256	3,183	8,855	8,800
Operating loss	(9,049)	(579)	(13,326)	(4,127)
Interest expense, net	(422)	(32)	(928)	(135)
Change in fair value of derivative instruments, net	263	0	377	0
Other (loss) income, net	(2)	12,215	(58)	16,853
(Loss) income before income taxes	(9,210)	11,604	(13,935)	12,591
Performance Improvement Solutions [Member]
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]
Impairment of ROU assets	0	3	0	3
Segment Reporting Information, Profit (Loss) [Abstract]
Revenue	8,052	7,375	22,402	21,318
Gross profit	2,654	2,252	7,037	6,204
Operating loss	(1,403)	(469)	(5,511)	(3,003)
Workforce Solutions [Member]
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]
Goodwill and intangible asset impairment charge	7,500	0	7,500	0
Segment Reporting Information, Profit (Loss) [Abstract]
Revenue	3,846	7,311	14,516	19,994
Gross profit	602	931	1,818	2,596
Operating loss	$ (7,646)	$ (110)	$ (7,815)	$ (1,124)